The market for GLP-1 drugs used to treat obesity and diabetes is also expanding rapidly in India. According to ET report, this market can reach around Rs 12,000 crore in the coming five years. The biggest reason for this is the huge fall in the prices of medicines and more companies entering this field.
Earlier this segment was dominated by Novo Nordisk’s medicines like Ozempic and Wegovy. Semaglutide, the molecule used in these medicines, has now come out of patent. This means that other companies can also make its generic (cheap) medicines. This is the reason why many new options have suddenly appeared in the market.
Huge drop in prices, treatment becomes easier
Whereas earlier the price of these medicines used to be Rs 8,000 to Rs 16,000 per month, now generic medicines are available for Rs 1,300 to Rs 5,000. This means that treatment is now within the reach of common people. In some cases, the weekly expenses have come down to only Rs 300-400. This is the reason why doctors are now able to recommend these medicines to more patients.
large patient base
According to the report, about 10 crore people in India are suffering from diabetes and 25 crore people are suffering from obesity. But till now the availability of GLP-1 drugs is very low. About 5% in diabetes and only 4% in obesity. As prices come down, this reach can increase rapidly and this is the biggest growth story of this sector.
Tough competition between companies
Many big pharmaceutical companies like Alkem Laboratories, Sun Pharma, Zydus Lifesciences and Dr. Reddy’s is involved in this race. Some companies are bringing cheap pen devices, while some are focusing on reusable pens. For example, Alkem has launched a starting dose at a very low price, while Zydus has introduced a pen in which the dose can be adjusted as per need. This benefits patients in both convenience and cost.
These medicines are coming in different forms like pen, vial and tablet. However, doctors and patients are liking the pen more because it is easy to use. Vial is definitely cheap, but its use is a bit complicated, hence its share is expected to remain low.
Big opportunity for investors
Analysts believe that this is not just a medicine business but a big long-term opportunity. Companies which have entered the market early and whose supply chain is strong can get more benefits. Its demand may increase rapidly, especially in Tier-2 and Tier-3 cities, where earlier expensive medicines were not accessible. Prices may fall further in the coming time and the number of patients may increase rapidly. Companies are bringing new devices, better doses and easier treatment options. Overall, this can prove to be a big change in the treatment of obesity and diabetes.